Wwyd BUY HOUSE OR INVEST THE MONEY?

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Forum -> Household Management -> Finances

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how to use our money

rent bigger and invest the money

[ 0 ]

buy a house now

100%

[ 23 ]

Total Votes : 23

amother

OP ↓

Wed, Sep 11 2024, 12:21 pm

Hi,

Need some advice we have money that we can use to either buy a house or an investment.
currently living in a 2 bedroom with 3 kids and need to move.......

buy a house now....... or rent a bigger apartment and invest the money..... we could make 100k return a year.
would appreciate some insight!! thanks

amother

Latte ↓

Wed, Sep 11 2024, 12:30 pm

Please buy.

How in the world will you make 100k in a year.

We’ve been investing many years with great success. And unless you are investing enough money to buy a huge house cash I’m wondering how you would make 100k in a year.

amother

Magnolia ↓

Wed, Sep 11 2024, 12:30 pm

How can you make 100k return per year?

That sounds like dangerous investments

amother

Green

Wed, Sep 11 2024, 12:32 pm

Yeah that doesn't make sense. Don't fall for it.
I don't think there's anyone who will tell you to keep renting and put the money in risky investment over buying a house.

Buy now. Best investment.

leah233

Wed, Sep 11 2024, 12:33 pm

How much money do you have that you can make $100K yearly on an investment and how secure is the investment ? Are you factoring in the taxes you will pay on the investment income and the taxes you will save by owning a house? What about the extra cost of renting something bigger? What about the equity you are building for yourself with every mortgage payment?

It most cases if you know where you want to settle down permanently it would make more sense to buy if you have the money to do so.

amother

Clear

Wed, Sep 11 2024, 12:36 pm

It’s prob 1M or close to it.
Im selling my home now too, gonna walk away with 975k and was told about 100k a year on returns

amother

↑ OP

Wed, Sep 11 2024, 12:37 pm

wow didnt expect such a clear response......... thanks all!!

amother

↑ Magnolia ↓

Wed, Sep 11 2024, 12:38 pm

amother Clear wrote:

It’s prob 1M or close to it.
Im selling my home now too, gonna walk away with 975k and was told about 100k a year on returns

Making 10% consistently in this market is not guaranteed at all.

amother

↑ Magnolia

Wed, Sep 11 2024, 12:39 pm

I assume with that kind of savings, you can buy outright without a mortgage?

amother

↑ Latte

Wed, Sep 11 2024, 12:52 pm

amother Clear wrote:

It’s prob 1M or close to it.
Im selling my home now too, gonna walk away with 975k and was told about 100k a year on returns

Very few ppl are getting 10% today.
Real estate was giving that. Now it’s about 7%. And there is the risk to losing the initial investment if things don’t work out.

Stock market had potential but also potential to lose a lot.
Investing is never guaranteed income.

Personally I would never put a lump sum like that into a single investment. I’d at least diversify into at least 4 diff buckets.

familyfirst

Wed, Sep 11 2024, 2:21 pm

Please buy a hiuse
The other investments are far riskier

The Rebbe encouraged home ownership if possible. Just buy

amother

Chicory

Wed, Sep 11 2024, 2:37 pm

amother Latte wrote:

This. We have investments in real estate, the stock market, our home and easy stuff like treasuries. Always diversify. 100k as a ROI means you need AT LEAST 1M invested. Realistically, probably closer to 1.5M+. 6-8% seems to be the standard right now for a balanced portfolio. Why not split the pot? Half the money into a house and take out a mortgage. Invest the other half and grow the money.

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